Real estate fuels huge jump in Blackstone’s profit

TRD NEW YORK /
Jan.January 30, 2014 12:00 PM

Blackstone Group ended its tremendous 2013 with a strong showing in the fourth quarter, mostly on the strength of gain in its real estate portfolio. Blackstone’s fourth-quarter profit was $621.3 million, a greater than five-fold increase from $106.4 million in the fourth quarter of 2012, according to its latest earnings report.

Blackstone’s real estate group, headed by Jonathan Gray, reported a 13.1 percent increase in the value of its real estate funds, according to the report, released yesterday. Blackstone sold a chunk of office properties in both the United States and the United Kingdom, and reaped big rewards from taking its hotel chain Hilton Worldwide Holdings public in December, according to the Wall Street Journal. Still, Blackstone is the biggest single-family landlord in the U.S. at the moment, published reports show.

Sources recently told The Real Deal that Gray’s real estate division was responsible for about 60 percent of the private equity firm’s profits. Gray reportedly became a billionaire himself last year.

Just yesterday, the second-largest U.S. landlord, American Homes 4 Rent, tapped Goldman Sachs to arrange the sale of bonds backed by rental home payments, mimicking Blackstone’s decision last year to market similarly-styled securities. [WSJ]  – Hiten Samtani


Related Articles

arrow_forward_ios
Stephen Schwarzman (Credit: Getty Images, iStock)

How “third-grade math” led to one of Blackstone’s first RE deals

Liberty View Plaza at 850 3rd Avenue and Marvin Schein (inset) (Photo by Axel Dupeux)

City lets Salmar bring office tenants to Brooklyn industrial property

Brookfield's largest-ever $15B property fund has invested in properties from New York (666 Fifth Avenue) to Bangalore (the Leela Palace hotel) (Credit: Brookfield, Getty Images, Leela)

Real estate fundraising hits lowest level since 2013

Blackstone's Jonathan Gray and an aerial of Industry City (Credit: Getty Images and Google Maps)

Industry City gets $720M refinancing

From left: Blackstone's Jonathan Gray, Joseph Simone of Simone Development and 535 Zerega Avenue in the Bronx (Credit: Google Maps, Simone Development)

Blackstone buys Bronx warehouse for $29M from controversial carter

Canarsie Plaza and Blackstone’s Kathleen McCarthy (Credit: Google Maps and Blackstone)

Blackstone picks up Canarsie shopping plaza for $130M

Blackstone Chairman Stephen Schwarzman (Credit: Blackstone via YouTube)

It will make you laugh, it will make you … cringe: Blackstone’s latest holiday video

Jonathan Gray

Moving out: Blackstone sells remaining stake in Invitation Homes

arrow_forward_ios
Loading...